Research

Real Wages over the Business Cycle: A Band Spectrum Approach

This paper uses band spectrum regression to isolate the cyclical relationship between real wages and employment in U.S. postwar monthly data. The author finds a small, but statistically significant, countercyclical pattern to real wages when real wages are measured relative to producer prices, but no cyclical pattern when real wages are measured relative to consumer prices. The spectral decomposition shows that the "cyclical" relationships reported in many time domain studies are attributable to correlations at frequencies either too high (periods less than two years) or too low (periods greater than ten years) to be associated

Publication Information
Article Title: Real Wages over the Business Cycle: A Band Spectrum Approach
Journal: Southern Economic Journal (Apr, 1990)
v. 56, iss. 4, pp. 905-917
Author(s): Cushing, Matthew J
Researcher Information
    
Cushing, Matthew J
Cushing, Matthew J
Professor of Economics
Expertise:
  • Labor Economics
  • Econometrics
  • Macroeconomics
Economics
CoB 525 U
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2323
Fax: (402) 472-9700
mcushing1@unl.edu